Common capital allowances misconceptions

Common capital allowances misconceptions

Do not lose out on valuable cash savings for your business

Capital allowances is a form of tax relief that allows businesses which pay tax in the UK to claim tax relief on qualifying capital expenditure they incur on assets such as buildings and equipment.

This means that businesses can deduct their qualifying cost from their profit, before calculating their tax liability.

Capital allowances is a financial benefit designed to incentivise businesses to invest in capital expenditure; however, below are 3 common misconceptions that dissuade businesses from benefiting from the valuable cash saving it offers.

Valuable cash savings for your business

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    Common capital allowances misconceptions

    Do not lose out on valuable cash savings for your business

    • Are you concerned you are out of time?
      If you still own the asset in respect of which you are claiming, the UK capital allowances scheme is designed in such a way that you can introduce the claim in your tax return for any future period, or by amending a recent tax return that is still available for amendment. A claim can sometimes take the form of a tax credit or refund if the business is loss making.
    • Are you deterred by a lack of cost information?
      You do not need to refrain from claiming capital allowances because you no longer have access to detailed cost information relating to the asset. With our quantification and costing skills, we can price up the relevant assets in order to identify the items and expenditure qualifying for tax relief.
    • Are you worried about the complex rules?
      We can apply our experience and knowledge of the legislation, relevant case laws and HMRC guidelines to identify allowances for you. Most accountants and tax compliance advisors will typically have the knowledge to assist in making capital allowances tax relief claim on easy to identify business equipment such as IT kit, furniture, machines etc. For capital expenditure on less obvious qualifying assets such as those relating to buildings or large-scale industrial / engineering plants, the skills and services of a specialist capital allowances advisor like us would typically be required in order to maximise the tax relief benefit. 

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        Additional tax relief may also be available through the structures and buildings allowances.

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          How we can help

          Our capital allowances team of qualified specialists with diverse experience and multidisciplinary construction and financial skills, leverage on their expertise to maximise cash saving benefits for businesses who incur capital expenditure.

          We provide a whole development lifecycle capital allowances advice from planning to design, construction, occupation and subsequent disposal or sale. This includes property sale and purchase transaction advise to support either the vendor to retain their capital allowances, or for the buyer to benefit from capital allowances on the purchase price paid.

          As shown below, our services include but are not limited to: Scoping exercise to explore what tax relief may be available to the business; due diligence to confirm scope and establish entitlement to claim; site visit to survey the assets where possible, in order to better understand their attributes such as construction technology and building engineering, as well as business use and function. We thereafter carry out a detailed analysis to identify qualifying expenditure and maximise the tax relief available. We subsequently prepare and issue our report to the business which can be filed with HMRC, along with the tax return in order to support the claim. We also go the extra mile in assisting the business with information in connection with the filing and any relevant post-filing requests.

          Our process

          Step Shape 1
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          Scoping

          Exploring availability of tax relief.

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          Due diligence

          Confirming scope and establishing entitlement to claim.

          Step Shape 3
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          Site Visit

          Surveying the assets where necessary

          Step Shape 4
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          Detailed analysis

          Identifying qualifying expenditure

          Step Shape 5
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          Reporting

          Preparing and issuing claim  report.

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          Filing support

          Assisting with filing and post-filing information.

          Why work with Leyton?

          We are an international consulting firm which helps businesses leverage financial incentives to accelerate their growth and achieve long lasting performance.

          With a multifaceted skillset comprising of construction, engineering, surveying, accounting and tax advisory, our dedicated capital allowances team is uniquely placed to apply their technical expertise and experience in identifying and maximising qualifying capital expenditure. This subsequently leads to valuable cash tax savings and improved business cash flow.

          We always keep compliance front of mind and have been delivering optimal services for over 24 years. This provides our clients with the peace of mind that they will receive the maximum financial benefit without unnecessary risks.

          26000

          Clients

          24

          Years of experience

          2200

          Experts

          26000

          Clients

          24

          Years of experience

          2200

          Experts

          What are the next steps?

          Are you planning to, or have you already incurred any commercial building or large-scale industrial and engineering plant related capital expenditure which may fall under any of the following categories?

          New construction | Refurbishment work | Fit out work | Buying buildings

          Please let us know as we can help you unlock and maximise cash tax savings and improve your business cash flow.

          Unlock and maximise your cash tax savings and improve your business cash flow.

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